nuclear-news

Governments have unpopular decisions to make to achieve their nuclear aims.

Global energy ministers met in Paris this week to discuss
how to kick-start a new age of atomic power. Installed capacity must triple
to 1,160 gigawatts by 2050, the Nuclear Energy Agency says. In the west,
many countries’ goals will hinge on attracting private capital to a
sector with a tarnished record.

Recent large projects in the US and Europehave run over budget and into delays. New, small reactors that can be built in factories by companies such as NuScale and Rolls-Royce to reduce risks are an exciting prospect. For larger projects in particular, governments
will have to offer incentives and guarantees that will not always sit
comfortably with taxpayers. ………..

France and the UK have ambitious targets. The UK is a test case for investor appetite
to fund new plants. It wants to secure funding for the 3.2GW Sizewell C
project, using a regulated asset base financing model. RAB …. offers
investors returns during construction. That avoids the accumulation of
interest on debt that would normally be paid off when projects open.

Households contribute to the financing via a surcharge on their energy
bills. For that reason, it is not popular with consumer groups. Opposition
will grow especially as investors will want the risk of any budget blow-ups
to be shared with bill-payers, at least 50-50. Governments have unpopular
decisions to make to achieve their nuclear aims.

 FT 30th Sept 2023

https://www.ft.com/content/d3b6ca64-f93f-464f-96ab-ec479e7a933e

October 2, 2023 - Posted by Christina Macpherson | business and costs, politics, UK